In a move to address the rising cost of living, the Department for Work and Pensions (DWP) has announced an annual payment increase of up to £750 for select benefits starting in April 2025.
This increase targets vulnerable groups, including people with disabilities, carers, and pensioners, ensuring better financial support for those most in need.
If you’re a recipient of benefits like PIP, DLA, or Carer’s Allowance, this guide explains how the increase affects you, eligibility requirements, and how to claim.
Why the Increase Matters
With inflation driving up the cost of essentials like food, housing, and energy, many people on benefits are struggling to make ends meet.
The £750 boost is part of the government’s response to this crisis, aiming to alleviate poverty and reduce financial stress for the 2.7 million people who rely on these benefits.
Key Information at a Glance
| Aspect | Details |
|---|---|
| Payment Increase | Up to £750 annually |
| Start Date | April 2025 |
| Eligible Benefits | PIP, DLA, Attendance Allowance, Carer’s Allowance |
| Eligibility | Recipients of eligible benefits |
| Claim Process | Automatic for existing beneficiaries; new applicants apply via DWP |
| Payment Dates | Adjusted payments begin April 2025 |
Breakdown of the Payment Increase
Here’s a comparison of the current and new weekly rates for eligible benefits:
| Benefit | Current Rate (£) | New Rate (£) | Annual Increase (£) |
|---|---|---|---|
| PIP (Daily Living) | £72.65–£108.55 | £73.90–£110.40 | ~£62.50–£96 |
| PIP (Mobility) | £28.70–£75.75 | £29.20–£77.05 | ~£26–£68.80 |
| Attendance Allowance | £72.65–£108.55 | £73.90–£110.40 | ~£62.50–£96 |
| Carer’s Allowance | £81.90 | £83.30 | ~£72 |
These increases provide significant relief over the year, especially for individuals relying on multiple benefits.
Who Is Eligible?
To qualify for the £750 increase, you must already be receiving one of the following benefits:
1. Personal Independence Payment (PIP)
For people aged 16–64 with long-term disabilities that affect daily living or mobility.
2. Disability Living Allowance (DLA)
For children under 16 with disabilities.
3. Attendance Allowance
For individuals above state pension age requiring care due to physical or mental health conditions.
4. Carer’s Allowance
For carers providing 35+ hours of weekly care to someone receiving certain disability benefits.
If you’re unsure of your eligibility, visit the GOV.UK website or contact the DWP.
How to Claim
For Current Beneficiaries
If you’re already receiving one of these benefits, there’s no need to apply. Payments will be automatically adjusted from April 2025.
For New Applicants
If you’re not currently receiving benefits but believe you’re eligible, follow these steps:
- Gather Documents
Collect evidence such as medical records, care plans, and proof of identity. - Submit an Application
- For PIP: Apply online or via the PIP claim line.
- For DLA: Complete a DLA claim form.
- For Attendance Allowance: Submit the claim form available on GOV.UK.
- For Carer’s Allowance: Apply online through the Carer’s Allowance portal.
- Provide Supporting Evidence
Ensure all required fields are completed and submit necessary documentation to avoid delays. - Await Approval
The DWP typically processes applications within 8–12 weeks.
Real-Life Impact
Case Study 1: John (PIP Recipient)
John, who lives with multiple sclerosis, relies on PIP for mobility aids. With the enhanced mobility component increase, he’ll receive an additional £96 annually, helping him save for advanced equipment.
Case Study 2: Sarah (Carer)
Sarah cares for her mother, who has dementia. The £72 boost to Carer’s Allowance will help cover rising transport costs, ensuring she can continue providing essential care.
Additional Support
Recipients of these benefits may also qualify for:
- Energy Bill Support: Discounts on utility bills.
- Warm Home Discount: Winter energy cost reductions for low-income households.
- Local Council Grants: Emergency financial aid for housing or living expenses.
Maximize Your Benefits
To make the most of your increased payments:
- Budget Wisely: Use tools like MoneyHelper to track spending.
- Claim Additional Support: Explore discounts and local council programs.
- Stay Updated: Regularly check GOV.UK for updates on benefits and payment schedules.
The DWP’s £750 increase is a welcome relief for millions of people. Whether you’re a current recipient or new applicant, understanding the changes and eligibility criteria can help you make the most of this support.
